The discounted dividends valuation model of common stock assumes that dividends will grow at a constant rate forever- This method tells us that the (dividend next year) divided by the (required rate of return - growth rate) yields the

What is a a stock?

A stock represents an ownership stake in a company as a common shareholder.

Common stocks allow shareholders to vote on company issues, with most companies granting one vote per share.

Some companies also offer stockholders dividend payouts, giving investors a stream of income on top of the market value of the stock.